New Product Development Under Channel Acceptance

Lan Luo; Kannan, P. K.; Ratchford, Brian T.
March 2007
Marketing Science;Mar/Apr2007, Vol. 26 Issue 2, p149
Academic Journal
In channel structures characterized by a powerful retailer (e.g., Wal-Mart, Home Depot), the dominant retailer's acceptance of a manufacturer's new product often determines the success of the new offering. Focusing on manufacturer in such a market, we develop an approach to positioning and pricing a new product that directly incorporates the retailer's acceptance criteria into the development process. Our method also accounts for the retailer's product assortment and the competing manufacturers' potential reactions in wholesale prices. Our method merges individual-level conjoint models of preference with game-theoretic models of retailer and manufacturer behavior that are specific to the institutional setting of the focal manufacturer. The application of our approach in the context of a new power tool development project undertaken by this manufacturer also highlights the potential of our approach to other analogous institutional settings.


Related Articles

  • How to screen new business opportunities. Poole, Jim; Gross, Chris // Proofs;Jan2007, Vol. 90 Issue 1, p74 

    The article discusses product innovation and development in dentistry. Dentists are always innovating and developing new products but lack the business experience and skill in launching a new product. To help them they must be educated in this as well as in the ability to screen for the...

  • Data Merge.  // Folio: The Magazine for Magazine Management;Feb2007, Vol. 36 Issue 2, p20 

    The article focuses on how to build a single-customer view. Publishers looking for new revenue opportunities have usually launched new products to take advantage of niches within their target markets. However, these products multiply and determining common attributes among the customers these...

  • Nescafé backs reduced-caffeine range with £6m. Sweney, Mark // Marketing (00253650);8/25/2004, p1 

    The firm Nescafé is jumping on the health bandwagon by putting more than £6m behind the its first range of reduced-caffeine coffee. The launch follows similar moves by Coca-Cola Co. and PepsiCo Inc. to develop mid-calorie versions of their cola brands in the past year. The products will be...

  • New Baby Wipes Introduced.  // Nonwovens Industry;Sep2004, Vol. 35 Issue 9, p16 

    Reports that On The Go Healthcare of Concord, Ontario, has launched the Baby Basics Sticky Fingers Hand and Face wipes in Canada. Company goal in terms of product placement.

  • New products succeed when they're managed. Blanchard, Richard J.; Niswander, Roxanna // Marketing News;5/14/1990, Vol. 24 Issue 10, p23 

    The article suggests how to introduce new products in the market. Planning and executing the steps leading to a product launch is as important as the launch itself. Communication between all departments such as engineering, marketing, sales and management, is a key factor. It recommends defining...

  • New products help redefine stomach remedies.  // Chain Drug Review;10/12/2009, Vol. 31 Issue 17, p29 

    The article reports on the significance of marketing new health products in boosting drug store sales in the U.S. A study conducted by Information Resources Inc. (IRI) found that when the popular probiotics segment is included, drug store sales were 1.41 billion dollars. Enzymatic Therapy Inc....

  • Analysis of Product Rollover Strategies in the Presence of Strategic Customers. Chao Liang; Çakanyıldırım, Metin; Sethi, Suresh P. // Management Science;Apr2014, Vol. 60 Issue 4, p1033 

    Frequent product introductions emphasize the importance of product rollover strategies. With single rollover, when a new product is introduced, the old product is phased out from the market. With dual rollover, the old product remains in the market along with the new product. Anticipating the...

  • New Product Development: The Performance and Time-to-Market Tradeoff. Cohen, Morris A.; Eliashberg, Jehoshua // Management Science;Feb1996, Vol. 42 Issue 2, p173 

    Reduction of new product development cycle time and improvements in product performance have become strategic objectives for many technology-driven firms. These goals may conflict, however, and firms must explicitly consider the tradeoff between them. In this paper we introduce a multistage...

  • 16. Merchandising. Penn Jr., William S.; WRIGHT, JOHN S.; GOLDSTUCKER, JAC L.; KUSHNER, DAN; CODNER, BERNARD // Journal of Marketing;Jan1963, Vol. 27 Issue 1, p101 

    The article presents abstracts pertaining to merchandising. They include "The New Product Boom," "New Product Leap-Frog: The Game Where Johnson Waxes," by John S. Lynch, and "The Potential of Beer Merchandising in Supermarkets."


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics